Shivafinz

Shivafinz Logo

Home loans made easy, smile guaranteed!

Home loans made easy, smile guaranteed!

About Home Loan

Banks and other financial institutions offer home loans for the purchase of the property. You can also buy/construct/renovate/extend your house with this money and repay it gradually within the chosen time period. Home loans are secured against the property, and if you fail to repay, the lender can take over the property from you and sell it to recover the dues.

The eligibility for a home loan depends on an applicant's income, credit history, property value and location. Based on these factors, the maximum loan amount is calculated.

Top Banks Offering Lowest Home Loan Interest Rates Nov 2022

Here's a list of top banks offering lowest housing loan interest rates in India. You can compare and apply online for the best home loan.

List of Banks/NBFCs Home Loan Interest Rate Processing Fee
State Bank of India (SBI) 8.40%-8.55%

0.35% of the loan amount + GST

Minimum 2000 + GST

Maximum of 10000 + GST Advocate & Valuer fee  - actual expenses will be realised separately.  

LIC Housing Finance (LIC HFL) 8.00% - 9.25%

For loan amount below INR 1 Crore - 0.25% of the loan amount + AT or INR 10,000 + AT. whichever is lower

Loan Amount Above INR 1 Crore to Up to INR 15 Crore - INR 20,000 + AT

HDFC Ltd 8.60% - 9.60%

Salaried & Self-employed Professionals - INR 3,000,  + Taxes

Self-employed Non-professionals - INR 5,000 + Taxes

 

PNB Housing Finance Ltd (PNBHFL) 8.50% - 11.20% INR 10,000 + GST
ICICI Bank

8.40% - 9.45%

 

INR 3,000 + GST
India Shelter Finance Corporation 11.99%-18% 2%-3% of the loan amount (Including GST)
Axis Bank 7.75% - 8.55% Up to 1.00% of the Loan amount subject to minimum of INR 10,000 + GST
Bank of Baroda 7.45% - 8.80% Upto 0.50% of the loan amount or Max INR 7,500 + GST
Bank of India 6.90% - 8.75% 0.25% of the loan amount, subject to a minimum and maximum of INR 1,500 and INR 20,000, respectively
Citibank 6.50% onwards Up to 0.40% of the loan amount + GST
IDBI Bank 7.50% - 9.15% Up to INR 5,000 + GST
For inward BT irrespective of the amount & PMAY proposals – Nil
Kotak Mahindra Bank

8.30% - 8.90%

 

For Salaried - INR 10,000 + GST

For Self-Employed/Professional - 0.25% + GST on loan amount
Piramal Capital & Housing Finance (PCHF) 10.50% Onwards 0.10% - 0.25% of the loan amount + GST
Punjab National Bank (PNB) 7.10% - 7.50% 0.35% of the loan amount, subject to a minimum and maximum of INR 2,500 and INR 15,000, respectively
Tata Capital 7.75% onwards 0.50% of the loan amount + GST
Godrej Housing Finance(GHF) 6.94% - 9.99% Salaried - INR 999 + GST at the time of Login
Self-Employed - 0.25% of the loan amount

HDFC Home Loan Interest Rate at 8.10%* onwards. Home loan EMIs start at INR 741 per lakh for a tenure of up to 30 years. All loans are at the sole discretion of HDFC Limited

Note - Borrowers need to pay various charges upfront. These charges are not negotiable and processing/application fee is one of them. So, do check all these details before applying for the loan.

Grab the lowest rate deal to ensure a greater reduction of the home loan EMI.

How to Apply for a Home Loan Online?

Shivafinz Experts guide you through the process of selecting a home loan with lowest interest rate as per your eligibility. The process is much simpler as compared to visiting different lenders offline.

Steps to follow to apply for a home loan

You need to provide the following details in the form given at the top of this page:

  1. Enter the desired loan amount
  2. Select employment status and mention monthly income
  3. Full name, city name, date of birth, contact number and email ID
  4. Accept terms and conditions
  5. Click on 'Get Quotes'

After the submission of the form, another form appears where you have to mention property details such as property value, applicant's gender, residence address, PAN number, and then click on 'Get Quotes'. Subsequently, you'll get a list of banks where you are eligible for a home loan.

Shivafinz has partnered with WhatsApp to enable consumers to apply for a home loan on WhatsApp. This is the first ever facility where a consumer can apply for a loan on WhatsApp just like chatting with your friends. You just need to answer a few basic questions and the chatbot will show you a list of options. The simplicity of the process makes it for a pleasant user experience.

Features & Benefits of Home Loan

  • Interest rate starting from 6.70% per annum
  • Special rates for women borrowers
  • Fixed EMI for the entire loan tenure
  • Interest subsidy available via PMAY CLSS scheme
  • Tax exemptions up to INR 1.5 lakhs and INR 2 lakhs on principal and interest portion, respectively, throughout the loan, even if the money is used for home renovation/extension/reconstruction
  • Option to take top-up loan for the above purposes
  • Home loan balance transfer facility
  • The maximum tenure is up to 30 years
  • The loan amount depends on the outstanding balance of the existing home loan subject to LTV ratio
  • Processing Fee - 0.35% of the loan amount plus GST onwards
  • Availability of substitute income documents - ITR or annual turn over
  • Importance of additional income in loan eligibility.
  • Co-borrowers of the loan can also avail tax benefit if they are co-owners of the property.

Types of Home Loans

Check out below the different types of housing loans that banks & NBFCs to individuals in India.

  • Home Purchase Loan
  • Land Purchase Loans/Plot Loan
  • Home Construction Loan
  • Home Improvement Loan
  • Home Conversion Loan
  • Home Extension Loan

What is the eligibility criteria for Home Loans?

Home loan eligibility is based on income, age, credit score, property value and location, etc. The table shows general eligibility criteria at all banks/NBFCs.

Parameters Salaried Self-employed
Age Should be between 21-60 years Must be between 21-65 years
Income Minimum income of INR 1,80,000 p.a. Minimum income of INR 1,80,000 p.a.
Current Experience 2-3 years of current job stability 3 years of current business stability
CIBIL Score 720 or above 720 or above

You can also check your home loan eligibility to know the maximum loan amount you are eligible for. This will only help you plan your purchase better. Your income, CIBIL score, age and professional stability, property location are very important. Lenders demand a CIBIL score of 720 or above with the property in an authorized location. However, if you have a genuine reason for your credit score to be lower than 720, some NBFCs can consider your application, but will approve the loan at a higher rate of interest.

How much loan amount can you get based on your salary?

Lenders calculate the maximum loan amount eligibility based on your salary. Only 50% of your net take home salary is considered for calculating the eligibility which means you can get a higher loan amount if your salary is high. The existing loan EMIs, if any, can also impact your home loan eligibility. If a home loan applicant is already paying an EMI, that will be deducted from the 50% of the salary and the remaining amount would decide your maximum loan amount eligibility.

Lenders calculate Fixed Obligations to Income Ratio (FOIR) based on your existing EMIs and net monthly income. The percentage of FOIR should be 75% or less. For instance, if your in-hand salary per month is INR 1,00,000 and you are currently paying a car loan EMI of INR 6000 and personal loan EMI of INR 10,000 and you want to know how much loan amount you can get for a home loan, your FOIR would be:

Your disposable income for a new loan is: INR 50,000 - INR 6,000 - INR 10,000 = INR 34,000

FOIR = Sum of existing obligations/Net take home salary*100

= ((INR 6000 + INR 10,000)/ INR 1,00,000) * 100

= (INR 16,000/ INR 1,00,000)*100

= 16%

So, lenders will approve the loan amount having monthly installment of INR 34,000 or less even for the longest tenure. Other factors such as your credit score help you fetch a better deal from the lender.